Investing in stocks starts with having an effective and easy-to-follow routine, backed by time-tested rules for when to buy, sell and hold. For a real-world example of how it works, scroll down to see how you could have used this routine to spot Nvidia before it broke out and surged 750%. Veeva Systems is another example of a breakout stock showing up on IBD screens early in its run.

AMD's and NVIDIA's GPUs Could Duke It Out at Computex 2019AMD and NVIDIA compete on GPUs amid macro tensions The US-China trade war turned into a tech war when the United States targeted China’s largest telecommunications equipment supplier,

AMD's and NVIDIA's GPUs Could Duke It Out at Computex 2019(Continued from Prior Part)NVIDIA creates hype around new gaming product There have been a lot of rumors about Advanced Micro Devices’ next-generation Navi GPU (graphics processing unit)

Amid the turmoil surrounding the U.S.-China trade dispute, Nvidia (NASDAQ:NVDA) stock is again declining. With the company's prospects in China in question, Nvidia stock will struggle to gain traction in the short-term.Source: Shutterstock Nvidia's move into tech's most important sectors has bolstered Nvidia stock price in recent years. As a result, the long-term outlook of Nvidia stock remains solid. However, Nvidia stock price probably won;t rise much in the near-term without an event or a meaningful drop in its price-earnings multiples. * 6 Stocks to Buy for This Decade's Massive Megatrend Put simply, Nvidia is a long-term buy because NVDA has arguably become the most important chip company. In the PC era, that title belonged to Intel (NASDAQ:INTC). However, applications more prevalent in today's tech world -- such as artificial intelligence (AI), virtual reality (VR), data centers, and deep learning -- depend on Nvidia's chips. Intel has made some headway against Nvidia in the data-center sector and AMD (NASDAQ:AMD) has become a threat in other tech sectors. Nonetheless, Nvidia leads the way overall.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Look for Changes in ValuationMoreover, the PE ratio of Nvidia stock, like that of other semiconductor stocks, will fluctuate tremendously based on changes in investors' sentiment. At first glance, that may not appear profound, as the PE multiples of most stocks fluctuate. However, few stocks' multiples have shifted as much as those of NVDA stock or of those of its peers, such as Intel and AMD.In the early part of the decade,the PE ratio of Nvidia stock often fell into the teens. At that time, traders saw Nvidia as a dying PC stock. However, optimism began to turn in 2015, when Nvidia became a leading player in several emerging tech sectors. As a result, the multiple of NVDA stock often exceeded 50 until the market-wide selloff began of last fall. As a result, investors can expect Nvidia stock price to fluctuate between about 13 and around 55 times NVDA's earnings. How to Play NvidiaToday's valuation of about 29 times earnings (and 20 times the consensus forward earnings estimate) is just below the middle of the historical range. Before the multiple of NVDA stock could near 55 again, the trade war would have to end and crypto currencies would have to recover.With bitcoin back above $8,000, a partial crypto recovery could occur. However, it's more difficult to predict when the trade war will end. Moreover, Nvidia stock price may fall further if no agreement is made soon.For these reasons, I would wait for awhile before buying NVDA stock. However, I would buy NVDA stock in the near-term if the trade war ends or if the forward PE of NVDA drops below 20, which occurred in December. If the trade war ends, I think Nvidia will rise for multiple days, taking the multiple much closer to the 55 level we saw before the selloff in late 2018. The Bottom Line on Nvidia StockInvestors should buy Nvidia stock, but only after prompted by an event or a meaningful decline in its valuation . Nvidia leads the way in powering tech's latest applications. In my view, this makes NVDA the most crucial chip stock, and it means that NVDA is a long-term buy.However, with the trade war still being waged, buying Nvidia for the short-term is risky. Moreover, competition from Intel and AMD makes the outlook of NVDA stock more uncertain. Still, if traders can buy Nvidia at a discount, or if market conditions begin to justify a higher PE ratio, NVDA will become attractive for short-term and long-term investors.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post Is Nvidia Stock a Good Short-Term Investment? appeared first on InvestorPlace.

Chip stocks continued their broad selloff Thursday, as investors feared that the U.S.-China trade war will last longer than previously expected. The PHLX Semiconductor Index slumped 2.2% in morning trade, with 29 of 30 components losing ground, as the S&P 500 declined 1.2%. The SOX, which has now shed 15.5% this month, has dropped below the 200-day moving average, which is widely followed as a tracker of longer-term trends, and is now in danger of the first close below that technical indicator since Feb. 4. Among the SOX's biggest decliners, shares of Advanced Micro Devices Inc. slid 3.6%, Micron Technology Inc. dropped 3.5%, Nvidia Corp. gave up 3.5% and Qualcomm Inc. shed 3.4%. The lone gainer was Cypress Semiconductor Corp.'s stock, which tacked on 0.5%. Analyst Vivek Arya at Bank of America Merrill Lynch said chip companies appear to be expecting some trade resolution by the third quarter, soon after President Trump meets with China's president Xi Jinping on June 28 to June 29. "Overall, we believe the U.S. holds significant leverage in the current trade war (semis perspective), and can continue to exert even more pressure (restrict additional Chinese customers) which should lead to some resolution," Arya wrote in a note to clients.

Everybody knows that Apple has plenty of exposure to China. This morning Goldman put out a piece saying that the max earnings sensitivity is 29%, meaning that Apple's annual total earnings per share exposure is about 29% or $3.35 a share.

"I'm not saying you should skedaddle from every stock with meaningful Chinese exposure," CNBC's Jim Cramer says. CNBC's Jim Cramer said that market volatility could get worse before it gets better as U.S.-China trade tensions drag on.

Advanced Micro Devices (NASDAQ:AMD) stock has been holding up pretty well lately. That's despite all of the trade-war talk that's infused quite a bit of volatility into the market. It's not that AMD stock has been immune by any means, but technically speaking, it's traded pretty well.Source: Matthew Rutledge via FlickrAMD stock was about flat on Friday, even after Nvidia (NASDAQ:NVDA) reported its earnings. However, Nvidia, AMD, Intel (NASDAQ:INTC) and others were not exempt from pressure on Monday. The semiconductor space, including AMD stock, was under pressure on worries about an escalating trade war between the U.S. and China. * 7 Safe Stocks to Buy for Anxious Investors Before we get any further, let's look at a chart of AMD stock and see what's going on.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Trading AMD Stock As you can see, Advanced Micro Devices stock price topped out at $29.95 in early April. A few days later, it tried to advance beyond that level and failed. Since then, it's been falling in a downward channel. AMD stock tried to break out of channel resistance on Friday, but failed to do so.What is likely to happen to Advanced Micro Devices stock price going forward?The 50-day moving average continues to be support for AMD stock. This level (highlighted with purple arrows) has been both support and resistance over the last six months. I want to see if it continues to act as support. If it does and AMD stock price can break out over channel resistance, Advanced Micro Devices stock price could make a run at $30.If AMD stock price falls below the 50-day level, channel support will again be called in to save the stock. By then though, the 38.2% Fibonacci retracement level near $26 may be tested once more. If AMD stock falls below that level, $25 is on the table. If selling pressure continues, we could see a test of the 200-day moving average, which is now near $23.75.I know this seems like a lot of levels, prices and moving averages. But the concept is actually quite simple. It comes down to how AMD stock does with the 50-day moving average. If that support holds, AMD stock price will test channel resistance. If the support doesn't hold, it will test channel support. If either level is broken, the stock's move could accelerate .Finally, it's worth pointing out that the MACD (depicted by the blue circle), which measures momentum, is beginning to swing in bulls' favor. Valuing Advanced Micro Devices StockThose who were bearish on AMD stock over the years used to point to two things: Its balance sheet and its net income. Essentially, Advanced Micro had too much debt and no profits.That's all changed, though, and those shifts are a big part of the reason for the rally of AMD stock price from single digits to about $27 in a relatively short period of time. Now that the rally has become sustainable, though, investors are buying and willing to hold AMD stock.Long-term debt sank 45% from year-end 2015 to year-end 2018, to $1.12 billion. Net income went from a loss of $33 million in fiscal 2017 to a profit of $337 million in fiscal 2018. Keep in mind that, in 2016, AMD lost almost $500 million.Last year, its earnings per share came in at 46 cents. For 2019, analysts, on average, expect AMD to generate EPS of 65 cents. In 2020, its EPS is expected to jump all the way to $1. So while the valuation of AMD used to be high, its valuation is quickly falling to more reasonable levels. It now trades at 41 times this year's average EPS estimate and about 26 times next year's consensus earnings estimate.While that may not be as low as Nvidia and Intel, AMD's top and bottom lines are expected to grow more quickly this year and next year than the other two companies. At the end of the day, there are reasons to like AMD stock for the long term, even if the industry is facing short-term headwinds.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post Can AMD Stock Rally to $30 Per Share? appeared first on InvestorPlace.

Shares of Nvidia (NASDAQ:NVDA) have come under serious selling pressure recently. Nvidia stock has fallen nearly 20% from the late April highs at $190. Much of the decline is likely due to the ongoing trade war and tariff tantrums with China. Although NVDA stock will likely remain volatile in the near term, volatility also provides opportunity. Time to be a buyer of Nvidia on any weakness.Nvidia reported earnings on May 16 that were a small beat on both the top and bottom line. Initially shares rallied on the news, but later sold off when CFO Collette Kress stated that the company would no longer be providing full-year guidance, only quarterly. The reason she gave that was visibility remains low -- which makes sense given the ongoing U.S/China issues. * 7 Safe Stocks to Buy for Anxious Investors Nvidia stock is certainly more attractive from a fundamental view given the combination of better earnings and a lower stock price. Current P/E now sits below 30 and also at a discount to the 5 year average of 34. It has also fallen sharply from the recent pre-earnings levels near 36. NVDA is comparatively cheap at current levels.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Trading NVDA StockNvidia stock is looking much better from a technical perspective. NVDA reached deeply oversold readings on many metrics before improving over the past few days. 9 day RSI was well below 20 while MACD reached similar extremes. Bollinger Band Percent B went negative before recovering to positive territory. There is major downside support at the $130 level. Click to EnlargeThe price action yesterday was also encouraging. Nvidia stock failed to make a new low and closed higher and also near the highs of the day. The ability for the bulls to take finally charge after the previous selling deluge is many times an indication of a reversal.Investors should use any further weakness in the Nvidia stock price to purchase shares. The initial upside price target is the 20 day moving average at the $171 area. A signficant break below support at $130 would be a viable stop out price.Option traders may elect to take a guardedly bullish position by selling an out of the money bull put spread. Selling the NVDA July $135 puts and buying the NVDA July $130 puts for a 75 cents net credit provides a 17.65% return on risk while also allowing for a 11% downside cushion to the current price of Nvidia stock.Tim may hold some of the aforementioned securities in one or more of his newsletters. Anyone interested in finding out more about Tim and his option-based strategies can go to https://marketfy.com/item/options-and-volatility. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post Nvidia Stock Is a Buy When the Chips Are Down appeared first on InvestorPlace.

Why is Nvidia so uncertain about this year's outlook? Prior to the report, analysts lowered their expectations for Nvidia to a GAAP EPS of $0.60. Last year, Nvidia earned $1.88 but investors widely expected the drop.

President Trump’s ban on China telecom giant Huawei is hurting technology stocks because Huawei is a big customer of prominent U.S. companies. Last week’s blacklist order said U.S. companies could no longer export technology to Huawei. For astute investors, segmented money flows provide an edge in doing good analysis.